USDA Loans - The Basics

USDA loans allow you to buy a home with NO money down! In some cases you can even finance in your closing costs on a home purchase, no other loan type allows this to happen.

In addition to having traditional DTI requirements, since USDA loans are intended for rural and lower income households, there are actually income limits as well. Set limits exist for every county, but in general, you cannot make more than 115% of the median county income.

USDA loans can be approved with FICOs in the 500s. However, getting approvals below 620 can prove challenging. 

A common misconception is that USDA loans are only for farms. In fact, working farms are ineligible for USDA financing. While your new home must be located in a "rural" area (more on that later) it must be a residential property.

Loan limits for USDA loans actually do not exist. Instead, the amount you can borrower is kept in check by having both a DTI requirement and an income limit.  There is only so much someone can borrower given a maximum income and a set debt ratio.

For free information call now at 877-606-9282 or set an appointment on our home screen for one of our mortgage experts to answer any additional questions you may have!